Updated State Appropriation Reduction Information
Jan 07, 2016
Dear OASA Member,
Today the Oklahoma State Board of Education voted unanimously to enact cuts to the General Revenue within our state appropriated accounts. These reductions will begin in January of 2016. We joined the Oklahoma State School Boards Association (OSSBA) in issuing a joint press statement reacting to the cuts which you can access here.
The cuts to all education appropriations with General Revenue are summarized below. Using these reduction levels, we have enclosed two formulas that will help you estimate the impact to your district for the State Aid Formula and the Flexible Benefit Allowance (FBA) and plan accordingly.
UNDERSTANDING REDUCTIONS IN FY 2016
UNDERSTANDING OKSDE ACTIVITY ACCOUNT CUTS TO YOUR DISTRICT IN FY 2016
The OK SDE Activity Account reductions are attached to this notice for your review. We recommend waiting for your next allocation notice from the Oklahoma State Department of Education to determine the impact of these reductions to your district.
FIGURING FORMULA CUTS TO YOUR DISTRICT IN FY 2016
WHAT IF MY DISTRICT RECEIVES ONLY FOUNDATION OR SALARY INCENTIVE AID? HOW WILL TODAY’S CUTS IMPACT MY SCHOOL?
Oklahoma’s school funding formula has two major components: the top half of the formula which is “Foundation Aid” and the bottom half of the formula which is “Salary Incentive Aid.” There are some districts that receive no state aid, or only one of the components of state aid identified above. For those districts receiving certain portions of state aid, we believe it is possible that the $ 23.00 loss per WADM could be split as follows:
Top Half [FOUNDATION AID] of Formula Factor could be reduced: $ 11.96 per WADM
Bottom Half [SALARY INCENTIVE AID] of Formula Factor could be reduced: $ 11.04 per WADM
FIGURING FBA CUTS TO YOUR DISTRICT IN FY 2016
We hope these tools help you to better understand and plan for the automatic funding reductions approved today. Please know that these numbers are based on the State Board of Education approved reductions in General Revenue within all state appropriated accounts. Be aware that you will need to monitor your cash flow as you manage your way through these cuts. It is important to note that schools may receive additional cuts this fiscal year due to a reduction in the HB 1017 Revolving Fund. The 1017 Fund supports the State Aid Formula. The possibility of additional cuts in FY 2016 is something that will be discussed at the State Board of Equalization meeting in February 2016.
Members of CCOSA’s Financial Assistance for School Districts Program are encouraged to contact our office if you are in need of additional budget planning assistance.
FY 2016 Budget General Revenue Reduction (in pdf format)